Economics in the Milagro Beanfield War

New Mexico is a great place to play some golf; also a good place to grow beans. The “Milagro Beanfield War” is about a group of New Mexicans trying to save their homes from being bought by Devine Development Corporation who wants to turn it into a resort. Joe Mondragon is the only person in Milagro who doesn’t sell his land to Devine because of his dead fathers dried up beanfield. Joe gets mad at the fact that everybody in Milagro sells their land to Devine Corporation offering good jobs when the resort is up, Joe diverts water from Devines’ land and begins growing beans; thus begins the “Beanfield War.”

Market Economic system was used the most in this film, meaning the individuals own the factors of production and set their own prices while the government does not get in the way. In the film Joe, a young entrepreneur who started to grow beans, showed this. In the end of the movie the beans were all his and he had a choice of what to do with them. The capital for Devine was much greater than Joe’s beanfield. This meant Joe had more to pay; involvement, with the government; (Command economy) than Devine Corporation did because Ladd Devine (owner of Devine Corporation) was very good friends with Sammy Canto (mayor of Milagro) making the government very angry with Joe and tries to find something stupid to arrest him for it. Since the Devine Corporation had more things to offer than Joe’s beanfield, like more people visiting when the resort went up then the economic system in Milagro would increase also. The government was very excited that Devine was there and wanted no mistakes. Traditional economic system was shown very little in this film other than religious bits here and there and Joe’s beanfield that was passed down to him from his father.

Characteristics of the free market system are, freedom of choice. This was demonstrated in the film by showing people could buy many products for example: The towns’ people of Milagro went to the store and bought gun ammo for their guns. Another characteristic is freedom of enterprise, having a choice to enter a business or to get out of one. Demonstrated in the film in many ways. A few ways that demonstrate this are: Joe, chooses to start up his bean farm again, another way is Devine starts a business in Milagro. The last one is how Rudy and Charlie each own a business.

Three goals in this movie are efficiency, growth, and stability. Efficiency in the film was over land and water use. Which one was the best use for the land and water, the bean field or the recreation area? This differs in many ways. The land and water usage would best benefit the Devine Corporation because it could help out the small town of Milagro. Also the towns’ people think that the only good coming from Devine is that it offers secure jobs for them and that Joe’s beanfield should be bigger. This also includes the Growth factor, that Devine would provide Milagro with better economic statistics. Stability, which one will minimize the ups and downs for the economic use in Milagro? The bean field would cause less job opportunities but also fewer problems to the town and profit incentive. Devine on the other hand would have more jobs and more problems and more profit. Really, both of these equal out.

In conclusion to the “Milagro Beanfield War” both of the sides have a plus side, a negative side, and equal side. It’s all about who will make better use with the resources, and who would save on the scarcity of the town capital. Joe and Devine have the same competition with the factors of production, since Joe only started to make Devine mad.